ALBANY, NEW YORK – Joseph Felix Strevell, 56, of Castleton, New York, was sentenced today to serve 30 months in prison, to be followed by a three-year term of supervised release, in connection with his guilty plea to five counts of perjury. 

The announcement was made by Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach, II, and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

As part of his guilty plea, Strevell admitted that from 1997 to 1999, he served as a Deputy Secretary of State for the State of New York.  He left that position in December 1999 to serve as the head of the state-funded Institute for Entrepreneurship, which he led until July 2001.  In 2007, Strevell pled guilty in federal court to defrauding New York State while leading the Institute, including using Institute funds to give himself a $95,000.00 lump-sum raise without the approval of the Institute’s Board of Directors. He also admitted to improperly using Institute funds to pay for his personal expenses and those of his family.

In March 2009, the United States District Court for the Northern District of New York entered a judgment against Strevell for this conviction, requiring him to pay $111,500.00 in restitution to   New York State, the victim of his offense. The judgment required Strevell to pay restitution at a minimum rate of $100 per month, or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so. 

In December 2014, the Civil Division of the U.S. Attorney’s Office for the Northern District of New York deposed Strevell under oath to determine whether he was complying with his restitution obligation.  When questioned about how he was able to make a $75,440.00 down payment on a lease with an option to purchase a 138.55-acre horse farm in Rensselaer County in April and May 2013, Strevell falsely testified that his mother and aunt provided most of the funds to make the down payment.  In fact, neither Strevell’s mother, nor aunt, contributed any money toward the down payment.

Strevell also lied during that deposition about whether he had paid for his daughter’s wedding in May 2014, falsely testifying that he contributed only “a couple thousand dollars” toward wedding expenses.  In fact, Strevell paid for most of the wedding, contributing more than $30,000.00, including $10,435.00 in cash to one vendor directly, and transferring tens of thousands of dollars from his business to his daughter. 

This case was investigated by the New York State Police and the FBI, and was prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Michael Barnett.

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Bruce King, 48, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute marijuana and possession of a short-barrel rifle which was not registered in the National Firearms Registration and Transfer Record. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000 or both.

            Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that King was arrested on October 19, 2015, following a search by the New York State Department of Corrections and Community Supervision of his residence at 161 Conkey Avenue in Rochester. During the search, officers recovered a brown paper bag with plastic capsules containing marijuana inside a backpack. Officers also found a .22 caliber sawed-off rifle with two boxes of .22 caliber ammunition. The barrel and the stock of the rifle had been shortened so that the barrel was 5 and 10/16 inches and the overall length was 14 and 1/16 inches. Officers also found drug trafficking paraphernalia in the residence as well.

The plea is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Rochester Police Department, under the direction of Chief Michael Ciminelli; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.

Sentencing is scheduled for January 22, 2018, at 12:30 p.m. before Judge Wolford.

On October 11, 2017, Ricky E. Shull, 51, Marion, was sentenced to federal prison for methamphetamine offenses, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.

Shull, who had previously pled guilty to a two-count indictment charging conspiracy to distribute methamphetamine and distribution of methamphetamine, was sentenced to 168 months of imprisonment, to be followed by 3 years of supervised release, and was fined $400.00. The indictment alleged that the offenses occurred between September 2016 and January 19, 2017, in Williamson County. Evidence at the plea and sentencing hearings established that Shull was involved with other persons in the distribution of ice in southern Illinois. Ice is methamphetamine which has a purity level of at least 80%. On January 19, 2017, Shull sold ice to a confidential source working for law enforcement. At sentencing, the district court found that Shull was responsible for the distribution of 436.45 grams of ice. Shull received an enhanced sentence based on his classification as a career offender.

The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office also assisted in the investigation.

Bangor, Maine:  United States Attorney Halsey B. Frank announced thatCara M. Blewitt, 30, of Oakville, Connecticut, pleaded guilty yesterday in U.S. District Court to aiding and abetting bank robbery and Hobbs Act robbery.  The charges arose from the robberies of a TD Bank branch and a Dollar Tree store.

Court records reveal that on May 28, 2017, an individual robbed a TD Bank branch in Bangor absconding with cash.  The next day, the same individual robbed the Dollar Tree store in Bangor at gunpoint, again, absconding with cash. The defendant served as the getaway driver for both robberies. Officers from the Bangor Police Department arrested the robber and the defendant within minutes of the Dollar Tree robbery. 

The defendant faces up to 20 years in prison, a $250,000 fine and full restitution.  The defendant will be sentenced after the completion of a presentence investigation report by the U.S.  Probation Office.

WICHITA, KAN. – A Russian-born woman was indicted here today on charges of international parental kidnapping, U.S. Attorney Tom Beall said.

Bogdana Alexandrovna Mobley, 37, is charged with one count of international parental kidnapping. Mobley was arrested Sept. 29 in Wichita after spending more than three years in Russia. Investigators believe her children are still in Russia.

According to court records, Mobley emigrated from Russia to the United States in 2003 and later became a naturalized U.S. citizen. In March 2014, her second husband filed for divorce in Sedgwick County District Court. While the case was pending and Mobley was pregnant with her third child, she fled to Russia with her two children – one born in 2004 when she was married for the first time and the other born in 2013 while she was married to her second husband. Her third child was born about two months after she returned to Russia.

In December 2014, a Sedgwick County judge granted full custody of the two younger children to Mobley’s ex-husband and ordered her to return them to him.

While she was in Russia with the children, she allowed her ex-husband to communicate with his children only by cell phone or Skype. In January 2015, he flew to meet her on the border of Poland and Russia but she did not allow him to see the children and she told him to give her money if he wanted to talk to them.

If convicted, she faces up to three years in federal prison and a fine up to $250,000 on the kidnapping charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.

OTHER INDICTMENTS

Jose Hernandez-Alejos, 39, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found Sept. 27, 2017, in McPherson County, Kan.

If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

Roberto Garcia-Zaragosa, 58, a citizen of Mexico, is charged with lawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found Sept. 20, 2017, in Seward County, Kan.

If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.

Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury today found Trayone Lefferio Bell guilty of one count of fraudulent possession of access devices (credit card), two counts of theft of government money, and three counts of aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for each of the first three counts, followed by two years in federal prison for the aggravated identity theft counts. His sentencing hearing has been set for January 4, 2018. Bell was indicted on December 21, 2016.

According to evidence presented at trial, Bell used stolen names, dates of birth, and Social Security numbers to file false 2011 federal tax returns. The fraudulent returns requested that the refunds be issued via prepaid debit cards in the victims’ names. Bell obtained the cards and used them in a series of large cash withdrawals and purchases. 

This case was investigated by the St. Cloud Internal Revenue Service-Secret Service Financial Crimes Task Force, which includes representatives from the Internal Revenue Service - Criminal Investigation, the U.S. Secret Service, the St. Cloud Police Department, the Osceola County Sheriff’s Office, the Brevard County Sheriff’s Office, the Palm Bay Police Department, the Casselberry Police Department, the Kissimmee Police Department, the Winter Park Police Department, and the Maitland Police Department. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.

LAREDO, Texas – A Laredo resident has been indicted on charges related to the enticement of a minor, announced Acting U.S. Attorney Abe Martinez.

A federal grand jury returned an indictment today against Ruben Morin, 22, of Laredo. The two-count indictment charges Morin with coercion and enticement of a minor and transfer of obscene materials to a minor.

Between Aug. 30, 2017, to Sept. 15, 2017, Morin allegedly communicated with whom he thought was a 13-year-old girl through an online messaging application and text messages. During these communications, Morin sent several pictures of his genitals, according to th charges. Morin then travelled locally to a location in Laredo for the alleged purpose of engaging in a sexual act with the girl. Upon his arrival, law enforcement took him in to custody.

If convicted of the coercion and enticement charge, Morin faces a mandatory minimum of 10 years and up to life in prison. For the transfer of obscene materials, he faces up to 10 years in prison. Both counts also carry a possible $250,000 fine, upon conviction.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Webb County Sheriff’s Department, Laredo Police Department and the United Independent School District Police.

The case, prosecuted by Assistant U.S. Attorney Christopher dos Santos, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visitwww.usdoj.gov/psc. For more information about internet safety education, please visitwww.usdoj.gov/pscand click on the tab "resources."

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

In sentencing Michael Marks to 80 months, Judge Peterson expressed his intent that Michael serve the same amount of time, that is 84 months, as William, but gave him 80 months to account for time he spent in state custody. 

Michael Marks and Williams Marks are cousins.

The charge against Michael Marks was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Dodge County Sheriff’s Department, Beaver Dam Police Department, West Central Drug Task Force, Columbus Police Department, Columbia County Sheriff’s Department, and Waupun Police Department.  The prosecution of the case has been handled by Assistant U.S. Attorneys Elizabeth Altman and Chad Elgersma. 

Two men from Northwest Ohio were indicted in federal court for attempting to distribute methamphetamine, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.

Eric D. Mason, 28, of Lima, and Kasey J. Hutchinson, 25, of Findlay, were each indicted on one count of possession with intent to distribute methamphetamine. The men possessed approximately 54 grams of methamphetamine on Sept. 6, according to the indictment

If convicted, the defendants’sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigating agency in this case is the Federal Bureau of Investigation.  The case is being handled by Assistant United States Attorney Thomas P. Weldon    

An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on October 11, 2017, United States District Court Judge Robert D. Mariani sentenced Gregorio Marmolejo, age 44, of Mexico, to 13 months’ imprisonment for illegal re-entry into the United States. 

According to United States Attorney Bruce D. Brandler, Marmolejo pleaded guilty to unlawfully returning to the United States after having been deported to Mexico in 2008.  Marmolejo was removed from the country after a 1992 conviction in New York for an attempted sale of cocaine.

The case was investigated by the U.S. Immigrations and Customs Enforcement and Removal Operations (ERO) and the Pennsylvania State Police.  Assistant United States Attorney Sean A. Camoni prosecuted the case.

# # #

HARRISBURG –The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenge Lewis, III, age 24, of York, Pennsylvania, the first of the nine individuals indicted as a result of a joint ATF-York County Drug Task Force operation in York, Pennsylvania, pleaded guilty on October 11, 2017, before United States District Court Judge Sylvia H. Rambo to possession of a firearm by a convicted felon. 

Lewis was indicted by a federal grand jury on March 29, 2017, and charged with possessing a .22 caliber I.J.A. & C.WKS revolver loaded with eight Winchester .22 caliber Super X cartridges.  United States Magistrate Court Judge Susan E. Schwab arraigned Lewis on April 18, 2017, and determined he should be detained pending trial. 

According to United States Attorney Bruce D. Brandler, Lewis sold a .22 caliber I.J.A. & C.WKS revolver that was loaded with eight Winchester .22 caliber Super X cartridges on January 23, 2017, in York.  Lewis has previously been convicted of a felony offense and is prohibited from possessing firearms.

A sentencing date is not yet scheduled. 

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the York County Drug Task Force, the York City Police Department, York County Adult Probation Department, and the York County District Attorney’s Office.  Assistant United States Attorney Meredith A. Taylor is prosecuting the case.

The case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 10 years of imprisonment, and includes a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

Earlier today at the federal courthouse in Central Islip, Gerard Terry pleaded guilty to one count of tax evasion for the tax years 2000 through 2015 in the amount of $992,057.  The proceeding took place before United States District Judge Joanna Seybert. When he is sentenced, Terry faces a maximum of five years’ imprisonment, a fine of up to $100,000 and mandatory restitution to the Internal Revenue Service.

The plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office (IRS-CI).

According to court filings and facts presented during the plea proceedings, Terry, an attorney licensed to practice in New York State, attempted to evade substantial income tax due and owed by him, even though he earned income from numerous government and quasi-government positions in Nassau County, including the Democratic Party in the town of North Hempstead, the Nassau County Board of Elections, the Town of North Hempstead, the Long Beach Housing Authority, the North Hempstead Housing Authority, the Freeport Community Development Agency, the Roosevelt Public Library, the Village of Port Washington, and the Village of Manorhaven.  Since January 2000, despite earning over $250,000 per year, Terry has failed to pay a federal tax debt of over $1.4 million which includes additional fees, interest and penalties. 

During the period charged in the indictment, Terry routinely failed to file personal Form 1040 tax returns, filing years later and only after vigorous pursuit by the IRS.  Even then, Terry filed Forms 1040 that contained false information and failed to report income.  Moreover, Terry has still failed to file returns for tax years 2009 and 2010.  Terry also evaded the IRS’s attempts at levy collection by cashing hundreds of wage and compensation checks worth over $500,000, rather than depositing them into checking or savings accounts where they could be seized.  When depositing those checks into his bank account, Terry did so in the minimum amounts necessary to cover checks and payments for his own personal expenses and luxury items, thereby making sure there were insufficient funds upon which the IRS could levy.  In his communications with the IRS, Terry routinely provided false, misleading and incomplete information to obstruct internal revenue laws.  For example, Terry created and utilized a checking account in the name of a corporate nominee so as to conceal income and avoid levy collection.  Additionally, Terry had one of his employers make direct payments to his credit card rather than issuing him a paycheck, allegedly to avoid levy collection by the IRS.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorney Artie McConnell is in charge of the prosecution.

The Defendant:

GERARD TERRY
Age: 62 
Residence: Roslyn, New York

E.D.N.Y. Docket No. 17-CR-37 (JS)

FRANKFORT, Ky. – A Frankfort man has been sentenced to 23 years in federal prison, for producing sexually explicit images of a minor and then sending them to another man.

Yesterday, United States District Judge Gregory F. Van Tatenhove formally sentenced Matthew Craig Fosson, 41, on his conviction.  Under federal law, Fosson must serve 85 percent of his prison sentence.  Following the completion of his prison term, he will be under the supervision of the United States Probation Office for life.

In his guilty plea earlier this year, Fosson admitted that, in August 2016, he produced sexually explicit images of a minor female, who was in his custody and care.  He sent those images to a Pennsylvania man, who in turn sent sexually explicit images of another minor female to Fosson.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and Amy S. Hess, Special Agent in Charge of the FBI Louisville Field Division, jointly announced the sentence.

SACRAMENTO, Calif. — The California State University, Chico chapter of the Pi Kappa Alpha Fraternity was sentenced Tuesday by U.S. Magistrate Judge Craig M. Kellison to 9,800 hours of community service, a three-year term of probation, and a $4,000 fine after pleading guilty to illegally cutting or otherwise damaging any timber, tree, or other forest product. The court also ordered the fraternity to pay restitution in the amount of $4,387.97 to the Lassen National Forest, United States Attorney Phillip A. Talbert announced. 

In addition, the former president of the Chico fraternity chapter, Evan Clinton Jossey, was sentenced to a term of court probation and $1,000 fine after pleading guilty to the same offense.  

According to the criminal complaint, Jossey and other members of the fraternity participated in an initiation ceremony at the Deer Creek Trailhead in the Lassen National Forest.  During the course of the initiation ceremony, 32 trees were cut down at the site. 

This case was the product of an investigation by the Tehama County Sheriff’s Office and the United States Forest Service, Law Enforcement and Investigations. Special Assistant United States Attorney Joseph M. Cook prosecuted the case.

McALLEN, Texas – Another member of an armed crew involved in stealing 246 kilograms of marijuana has been ordered to prison, announced Acting U.S. Attorney Abe Martinez.

Mexican nationals Eduardo Rodriguez-Silva, 27, and Arturo Guadalupe Saldivar-Abrego, 30; Eliezer Jesus Vela, 39, of Pharr; and Luis Angel Gonzalez, 21, and Nery Gonzalez Jr., 29, both of Edinburg, pleaded guilty to one count of possession with intent to distribute a controlled substance. Rodriguez-Silva, Saldivar-Abrego, Gonzalez and Gonzalez Jr. also pleaded to conspiracy to carry and use a firearm during and in relation to a drug offense.

Today, U.S. District Judge Randy Crane ordered Rodriguez-Silva to serve 60 months imprisonment for the drug trafficking and a 120-term of imprisonment for the firearm charge. The sentences will run consecutively for a total of 15 years in federal prison. He is expected to face deportation proceedings following his release.

Judge Crane previously sentenced Gonzalez Jr. to 207 months in prison, while Gonzalez, Saldivar-Abrego and Vela were ordered to serve 180, 96 and 60 months, respectively. Vela, Gonzalez and Gonzalez Jr. will also serve four years of supervised release following completion of the prison terms. Not a U.S. citizen, Saldivar-Abrego is expected to face deportation proceedings following his release from prison.

On Oct. 9, 2015, a vehicle containing approximately 246 kilograms of marijuana was traveling on expressway 83. Rodriguez-Silva, Saldivar-Abrego, Gonzalez and Gonzalez Jr. soon approached in a second vehicle and fired gunshots at the load vehicle, forcing it to stop. They then transferred the marijuana into their vehicle. Following a pursuit, officers apprehended Saldivar-Abrego. Gonzalez and Gonzalez Jr. were arrested shortly thereafter. In March of 2017, Rodriguez-Silva was arrested. A subsequent investigation revealed Vela was the owner of the vehicle and that it was purchased knowing it was to be used to transport narcotics.

All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Drug Enforcement Administration conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and police departments in San Juan and Alamo. Assistant U.S. Attorney Rolando Cantu and Kristen Rees prosecuted the case.  

Columbia, South Carolina----United States Attorney Beth Drake stated today that Jamey O. Green, a/k/a “Hog”, age 42, of Columbia, South Carolina, was sentenced in federal court in Columbia for possession with intent to distribute and distribution of crack cocaine, a violation of 21 U.S.C. § 841(a)(1).  United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced Green to 188 months (15 years and 8 months) in federal prison followed by 6 years of supervised release.

Evidence presented at the change of plea hearing established that after receiving complaints from citizens, members of the Columbia Police Department (CPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into drug distribution in the Martin Luther King Park area of Columbia.  On five separate dates between May and September of 2014, agents made undercover crack cocaine purchases from Green. 

Earlier this year, Green pled guilty in federal court to one of those distributions, a sale of crack cocaine he made to an undercover officer on July 30, 2014.   On this date, the undercover officer met Green at a home in the area to purchase an ounce of crack cocaine.   Green agreed and walked to the rear of the residence to retrieve the crack cocaine.  When he returned, Green sold the officer approximately an ounce of crack cocaine for $1100.

The case was investigated by officers and agents of the City of Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.

#####

Columbia, South Carolina----United States Attorney Beth Drake stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:

Beaufort Man Indicted on Firearm and Drug Charges. J Dorian M. Allen, age 33, of Beaufort County, was charged in a 3-count indictment with Possession with Intent to Distribute Controlled Substances, a violation of Title 21, U. S. C. §841(a)(1), Possession of a Firearm in Furtherance of a Drug Trafficking Crime, a violation of Title 18, U. S. C. §924(c)(1)(A)(i), and Felon in Possession of Firearm or Ammunition, a violation of Title 18, U. S. C. §922(g)(1).  The maximum penalty Allen could receive is 20 years imprisonment and a maximum fine of $1,000,000,.  The case was investigated by the Beaufort County Sheriff's Office and Bureau of Alcohol, Tobacco, Firearms and Explosives and is assigned to Special Assistant United States Attorney Carra Henderson of the Charleston office for prosecution.

Two Indicted for Making and Passing Counterfeit Currency.  Bryan Lambert, age 30, and Kayla Nichols, age 25, both of Myrtle Beach, South Carolina, were charged in a 4-count Indictment with Making and Passing Counterfeit Currency, a violation of Title 18, United States Code, Sections 471 and 472.  The maximum penalty that Lambert and Nichols could receive is 20 years imprisonment.  The case was investigated by agents of the United States Secret Service and the Moncks Corner Police Department and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.

Andrews Woman Indicted for Theft of Government Property.  Denise Mack, age 54, of Andrews, South Carolina, was charged in a 1-count Indictment with Theft of Government Property, a violation of 18 U. S. C. § 641.  The maximum penalty that Mack could receive is 10 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.

The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

#####

WILMINGTON, Del. – A federal grand jury in Wilmington has charged a former Chemours employee with conspiring to steal trade secrets and attempting to monetize them with Chinese investors, announced Acting U.S. Attorney David Weiss and Gordon B. Johnson, Special Agent in Charge of the FBI Baltimore Division.

According to the indictment, the conspiracy involved sodium cyanide, a chemical used in mining and for which Chemours is the world’s largest producer.  Chemours, based in Wilmington, performs the research and development for sodium cyanide at the Experimental Station in Wilmington.  Sodium cyanide is most often used to mine gold, silver, and other precious metals.  Earlier this summer, Chemours broke ground on a $150 million sodium cyanide plant in Mexico.

The individual charged in the indictment is Jerry Jindong Xu, who moved from China to North America in 2011 while employed by DuPont, and became a Chemours employee when Chemours spun off of DuPont in 2015.  Xu, terminated by Chemours in 2016, was a marketing professional specializing in sales of sodium cyanide.  Xu was aided by an unnamed co-conspirator, who was also a longtime DuPont employee before leaving the company in 2014 to open a cyanide and mining consulting business.

According to the indictment, Xu completed several overt acts in furtherance of the conspiracy.  His main objective was either to help investors build a competing sodium cyanide plant or become an import competitor in North America.  Over the course of one year, all while employed at Chemours, he:

• Misled colleagues and fabricated assignments in order to accumulate vast amounts of pricing and other information, including obtaining passwords for spreadsheets.
• Contacted potential Chinese investors to solicit funding for building a sodium cyanide plant. They would communicate in English and Chinese, sometimes over an encrypted Chinese messaging service.
• Explained to one Chinese investor that he wanted to do this project “for himself and not to slave away at this only to benefit someone else”
• During a 2016 trip to China, accessed Chemours documents and told his co-conspirator he had “out-of-the-big (sic) ideas cooking” that he was anxious to discuss. He also asked how much their plant project would be worth.  “Would you say in the millions?”
• Created a company, made his wife the director, and executed a non-disclosure agreement with his co-conspirator.
• Asked for and received a tour of Chemours’ sodium cyanide plant, during which he secretly took pictures of plant system diagrams and sent them to himself.
• In the week after he was notified of his termination, he copied and/or sent himself many Chemours confidential documents, and then falsely certified that he had returned all Chemours files.

Xu is charged with conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5).  The maximum penalties he faces are 10 years imprisonment and a $250,000.00 fine.  Xu was arrested in New York in August and arraigned in Wilmington on September 28, 2017.

Chemours was formed in July of 2015 after the DuPont Corporation separated its performance chemicals business line from its other business.   Chemours is a publicly traded corporation with its corporate headquarters located in Wilmington, Delaware.   It is the world’s largest sodium cyanide producer.

“We are committed to prosecuting anyone—be they rogue actors or foreign nations—who tries to line their pockets by jeopardizing the hard work our businesses perform every day,” said Acting U.S. Attorney Weiss. “This brazen conduct goes to the heart of intellectual property protection and our office will aggressively and diligently pursue anyone who breaks laws and threatens corporate innovation.”

FBI Special Agent-in-Charge Johnson said, “The FBI investigation and this indictment reveal a broken trust from a company employee who stole trade secrets in a structured, multi-faceted fashion,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division.  “The FBI will vigorously investigate cases whenever trade secrets are stolen or otherwise compromised.  Private sector entities should be alert to protect trade secrets, and report indicia of their theft to the FBI."

The case is being prosecuted by Assistant United States Attorneys Jamie McCall and Alexander Mackler.  The investigation, which is ongoing, is being conducted by the FBI.

A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Salvatore Demeo, an alleged member of the Genovese organized crime family of La Cosa Nostra, with tax evasion and failure to file tax returns.

The charges were announced by William J. Muller, Executive Assistant United States Attorney for the Eastern District of New York, and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).

As detailed in the indictment, in two separate real estate transactions in 2013 and 2014, Demeo sold his shares in valuable real estate in Downtown Brooklyn, earning him more than $2 million in capital gains.  Rather than report this income, as he was required to do, Demeo took a series of measures designed to conceal the proceeds from the IRS.  For example, he instructed his attorney to issue his shares to him in eight separate bank checks: three checks for the first transaction and five checks for the second transaction.  In addition, even though Demeo had multiple bank accounts, he chose to not deposit the proceeds into them, and instead enlisted the assistance of others to help conceal the funds.  First, he endorsed two checks, amounting to $1 million, to a plumbing business, despite the fact that he has no apparent ownership interest in it, or other business relationship with it.  In addition, he endorsed another of the checks, in the amount of approximately $355,944, to an individual who operated an unlicensed check-cashing business, who then withdrew from the accounts approximately five cashier’s checks in smaller amounts, which were then cashed at licensed check-cashing establishments in exchange for a fee.  As a result of Demeo’s fraud, Demeo avoided payment of federal taxes in excess of $365,000.

“Today’s arrest reflects our continued commitment to prosecuting alleged members of the mafia with every tool available to us,” stated Executive Assistant United States Attorney Muller.  “Tax crimes like those charged in the indictment harm our government and every American citizen.  Organized crime members are on notice that this Office and its law enforcement partners will hold them accountable for such economic crimes no less than for their traditional schemes and offenses.”

“Regardless of your occupation, we Americans all must file and pay our income taxes,” stated IRS-CI Special Agent-in-Charge Robnett.  “The allegations of tax evasion spelled out in this indictment are what IRS Criminal Investigation Special Agents have been investigating for almost 100 years.”  

The defendant is scheduled to be arraigned this afternoon before United States  Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn.  The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorney Elizabeth Geddes is in charge of the prosecution.

The Defendant:

SALVATORE DEMEO
Age:  77
Brooklyn, New York 

E.D.N.Y. Docket No. 17-CR-545 (KAM)

GREENEVILLE, Tenn. – On October 11, 2017, Christopher Horton, a.k.a. “Slim,” 30, of Johnson City, Tennessee, was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 150 months in federal prison for possession with the intent to distribute a quantity of cocaine base “crack,” possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm.  Upon his release from prison, he will be supervised by U.S. Probation for five years.  There is no parole in the federal system.

In June 2017, a jury convicted Horton of these charges, which arose from his early morning arrest by Johnson City Police Officers, on January 4, 2015, near the WJHL office on State of Franklin Street.  Horton brandished a firearm outside the Old South bar, which resulted in a brief pursuit by officers.  During the pursuit, an officer saw him duck down beside a car in a parking lot. After his arrest, a firearm and quantity of crack cocaine were found under the vehicle where he was earlier seen. Officers recognized that fibers on the firearm appeared similar to that of a torn pocket on Horton’s jacket.  Forensics experts from the Tennessee Bureau of Investigation found that the fibers on the firearm did match the type of fibers in Horton’s jacket.  Additionally, DNA matching Horton was also found on the firearm.

Agencies involved in this investigation included the Johnson City Police Department and Bureau of Alcohol Tobacco Firearms and Explosives.  J. Gregory Bowman, Assistant U.S. Attorney represented the United States.                        

This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws.  It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences.  PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces. 

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